Bajaj Allianz Life announces Rs 1,833 cr bonus for FY25 policyholders

Bajaj Allianz Life Insurance has announced a substantial annual bonus amounting to Rs 1,833 crore for the financial year 2024–25 (FY25). This bonus represents a 32% increase compared to the Rs 1,383 crore declared the previous year, benefitting more than 1.17 million policyholders. These policyholders hold traditional participating policies that remained active as of March 31, 2025. The bonus is sourced from the surplus generated under the insurer's participating fund and will be disbursed upon policy maturity or exit, following the specific terms of the policies. 

The company announced a special reversionary bonus of 5%, amounting to ₹206 crore, for policyholders of two equity-oriented plans. This special bonus applies to policyholders of two equity-focused plans: Bajaj Allianz Life ACE – Wealth Option and Bajaj Allianz Life Flexi Income Goal – Enhanced Benefit. This gesture underlines the company's commitment to delivering consistent value to its policyholders, further enhancing the benefits of their investment plans.

When can insurance holders expect the bonus

Policyholders can expect to receive their bonuses either at the time of policy maturity or exit, as per the insurer's policy. In some cases, cash bonuses may be allocated annually on the policy anniversary based on the specific terms of the policy.

Tarun Chugh, the managing director and chief executive officer of Bajaj Allianz Life Insurance, announced that the company has achieved its highest-ever annual participating (PAR) bonus of Rs 1,833 crore this year. This achievement is a testament to the sound investment strategies and strong financial base of the company. As of March 31, 2025, Bajaj Allianz Life Insurance boasted an individual claim settlement ratio of 99.29 per cent and a solvency ratio of 359 per cent. 

This year marks the 24th consecutive year that Bajaj Allianz Life has announced such a bonus, highlighting their focus on providing sustained value. Bajaj Allianz Life Insurance operates as a joint venture between Bajaj Finserv Ltd and Germany's Allianz SE. As of March 31, 2025, the company has reported assets under management exceeding Rs 1.23 lakh crore and demonstrated a strong individual claim settlement ratio of 99.29%. These figures underscore the insurer's solid financial foundation and operational efficiency.